Meeting Minutes - US Department of State

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
in the real estate market that we're seeing.
Basically, a public entity with excess land will,
through a competitive process, find a development
team with whom they will execute a long-term
operating lease, ground lease, and are compensated
through payment in kind, which can come in the form
of new construction, renovations, O and M, a variety
of forms.
From the industry side of the house, it's
been pretty interesting. The industry is excited
about it. There's a lot of creativity involved in
it and flexibility and it's pretty interesting.
In talking a little bit with Steve and
Keith about it, there are some challenges to
implementing it within OBO. One is, I guess, the
main one is really relative to OMB and scoring of
leases, a capital lease. The requirements of a
capital lease don't really work in an EUL
environment.
So, I think from that perspective either
trying to find some relief from OMB relative to that
or looking like the Corps of Engineers does to using
some sort of operating lease to execute an EUL are
probably the two ways to go. But we thought it was
interesting and worth mentioning.
Free State Reporting, Inc.
1378 Cape St. Claire Road
Annapolis, MD 21409
(410) 974-0947
167